Pub Landlords Warn of Closures Following Reeves's Budget Business Rate Increases
The business rates discount of 40% introduced during the COVID-19 pandemic will end in April following the November budget by Chancellor Jeremy Reeves, causing a significant rise in business rates for pubs across the UK.
Landlords have expressed concerns that these increases could lead to closures and higher prices for consumers. In Poole, Dorset, where there are 58 pubs, some establishments face sharp rate hikes; for example, the Barking Cat Ale House is expected to pay about £9,000 more annually. Other local pubs have reportedly faced increases ranging from 600% to 800%.
As a result of these changes, it is claimed that up to 1,000 pubs nationwide have banned Labour MPs in protest against the rate rises.
Neil Duncan-Jordan, Labour MP for Poole, has urged a reconsideration of these tax increases and is reportedly ready to support amendments to the Finance Bill. He may vote against the government's tax rise.
The government has responded that temporary relief measures have ended but highlighted a £4 billion transitional relief fund to help ease the impact. The issue sparked a notable exchange during Prime Minister's Questions between Kemi Badenoch and Sir Keir Starmer.
